The European Union is measuring up its response to the anticipated new tariffs being imposed by the US administration. But what tools does it have?
US President Donald Trump claims tariffs is his “favorite word.” Across the Atlantic, meanwhile, the European Commission has described Trump’s trade policy as “an act of economic self-harm,” and is preparing its reponse.
In the emerging trade war with the US, Brussels is treading a delicate balance of trying to look strong, while also keeping its traditional ally on side.
The EU’s top trade official, Maros Sefcovic, believes Trump could impose a sweeping 20% tariff on all EU goods imported into the US by early April, significantly increasing the cost of European products. It still remains unclear whether the US will target individual countries or the EU as a bloc.
Any new tariffs would be in addition to the 25% tariffs already imposed on EU steel and aluminum imports, as well as separate tariffs on the European automotive sectorthat have been implemented over the past few months.
